(RTTNews) - Monday, self-administered equity real estate investment trust UDR, Inc. (UDR: News ), reported a drop in funds from operations for the third quarter, reflecting a non-cash equity loss related to investments in two of its single-asset unconsolidated joint ventures, as well as charge associated with the premium on a tender offer. UDR also slashed its FFO guidance for the fiscal year 2009, citing the uncertain global economy, credit market volatility and job losses in key markets.

The Highlands Ranch, Colorado-based company reported a third quarter net loss available to common stockholders of $40.78 million or $0.27 per share, compared to a loss of $9.78 million or $0.07 per share last year.

Loss from continuing operations available to common stockholders for the quarter was $40.36 million or $0.27 per share, compared to a loss of $17.10 million or $0.12 per share in the year-ago quarter.

Funds from operations or FFO for the recent quarter plunged to $28.80 million or $0.18 per share from $47.93 million or $0.32 per share in the year-earlier quarter.

Results for the quarter include a non-cash equity loss of $16.0 million or $0.10 per share related to the company's investment in two of its single-asset unconsolidated joint ventures, and a $0.02 per share charge associated with the premium on a tender offer for $37.5 million of the its bonds maturing in 2024. Results also exclude the negative $0.01 per share effect of the implementation of FASB ASC Subtopic 470-20.

Adjusted FFO for the quarter decreased to $29.76 million or $0.19 per share from FFO of $49.60 million or $0.33 per share in the same quarter last year.
Excluding the one-time charge for the premium on the bond tender, the equity loss on the Bellevue assets and the impact of ASC Subtopic 470-20, FFO-Core per share would have been $0.31, compared to $0.30 per share in the year-ago period.

On average, 19 analysts polled by Thomson Reuters expected the company to earn $0.30 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the previous second quarter, the company reported a net loss available to common stockholders of $14.86 million or $0.10 per share, compared to a loss of $3.87 million or $0.03 per share in the previous year.

Funds from operations for the quarter rose to $56.3 million or $0.35 per share from $49.8 million or $0.33 per share in the year-ago quarter. On an adjusted basis, funds from operations declined to $53.65 million or $0.34 per share from $48.15 million or $0.32 per share last year.

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